More than $18M unclaimed as Manitoba education property tax, auto insurance rebate cheques go uncashed

The Manitoba government celebrated its new education tax rebate as ameansto givefinancialrelief to all property owners, but more than 18,000cheques have not been deposited.

In total,18,550 of the456,168chequesthe province mailed out last year4.1per centhave yet to be cashed, the government confirmed.

That amounts to almost$6.8 million of taxpayers' moneysitting somewhere, unclaimed.

There are also61,000rebate chequesfrom Manitoba Public Insurance a provincial Crown corporation that are gathering dust. The uncashed MPI cheques,given out throughthree rounds of pandemic-era rebates, total approximately $12 million.

A spokesperson for the provincial governmentnotes the rebatescan be deposited at any time, and saidthe cheques arestill being cashed ona regular basis.

However, the Progressive Conservative government hasreceived pushback forputting cheques in the mailsince it introduced the education tax rebatein 2021. Critics have suggested the province couldinstead use direct deposit, orincrease theeducation tax credit that propertyowners already receive.

The average rebate for a Winnipeg homeowner was about $458 in 2021.

A taxpayers' advocate applauds the government for moving to phase out what he says is an archaicway of funding the education system, butsaid the method forgetting the tax rebate outis old-fashioned.

"When you're doing the right thing, you need to do it the right way," said Todd MacKay, Prairie director of the Canadian Taxpayers Federation.

"Sending out cheques? Licking envelopes?Like, wasthe fax machine broken?Did the passenger pigeons fly the coop? What's going on here?

"Obviously, there's smarter ways to move money these days cheaper, more efficient ways to do it. The government needs to put some effort into that."

Cheques a political calculation: financial advisor

The province's cheque-issuing strategy came with a price tag of roughly$915,000 last year. Each chequecost the province around $2, when you combine the price of the cheque, envelope and postage,the Winnipeg Free Press reported.

The government hasdefended sending chequesas a safe and reliable way to deliver money, adding the province doesn't haveaccesstopeople's electronic banking information.

But MacKay urged the government to come up with a better solution. Under the current approach, envelopes can get lost in the mail,sent to the wrong address or forgotten about.

"Every government faces the temptation of trying to useits power to look better and put a bunch of cheques in the mail that's pretty tempting," he said. "But they need to resist that temptation anddo things the smart way."

David Christianson, a Winnipeg financial advisor, said the government is likely making a political calculation. The cheque in the mail reminds people of thepolicy decision, and which government it's coming from.

"I've spent 35 years in financial education andI've kind of come kicking and screaming into the realization that when things are in people's hands, they remember them. They'retangible. They matter," saidChristianson, who is also the author of the book Managing the Bull: A No-Nonsense Approach to Personal Finance.

The Tory government, whose popularity among Manitobanshas fallen,is trying to "maximize the emotional impact" in its tax relief decision, he reasons.

He also says an electronic approach doesn'twork for everyone. The Canada Revenue Agency has been trying to compel people to sign up for direct deposit forincome tax returns, but it still sent out3.4 million printed chequesthis year.

"The hard reality is that it'sa tough thing to do, to get money out to people. It shouldn't be tough, but it seems like it is,"Christianson said.

He suspects the Manitoba government may not have had time to develop a new strategy for sending rebates inthe first year of theprogram, butsaid the government should movetoward a digitalsolution.

Feds will also mailsome cheques

It doesn't appear the province is headingin that direction, however.

A government spokesperson defended Manitoba's approach, sayingother organizations and jurisdictions also issue cheques.

The federal government is moving froman annual carbon tax rebatethat offset income taxes to a quarterly chequereceived through direct deposit or through the mail.The first payment is expected in July infour provinces, including Manitoba.

The provincial spokesperson said Manitoba's finance department has foundefficiencies in sending out education property tax rebates.

Starting this year, people who havemultiple properties in Winnipeg will receive just one cheque, which was the case in allother municipalities last year. Individuals withmultiple properties in more than one municipality will receive separate cheques.

NDP Leader Wab KinewaccusedHeather Stefanson's Tory governmentofrepeating amistake by continuing to putcheques in the mail, which was the method usedwhen the rebate program startedunder former premier Brian Pallister.

"We're seeing through these numbers that this is not the most effective way to reach people," the Opposition leader said.

Thegovernment should pursue other meansof helping Manitobans through the current affordability crisis, Kinew said. He addedthe NDP would put forward its plan in the near future.

As was the case last year, property owners will receive this year's rebate cheques, which will total roughly $350 million, the same month their taxes are due, which is in June inWinnipeg.

People who did not receive their education rebate cheque last year can request a replacement at 1-866-626-4862, or they cancall Manitoba Public Insuranceat 1-800-665-2410 if they did not receive their eligible rebate on their auto insurance.

18,000 education property tax rebate cheques still not cashed

2 years ago

Duration 2:14

Every property owner was supposed to benefit from the Manitoba provincial education property tax rebate. But for whatever reason, 18-thousand of last year's cheques worth millions of tax dollars have yet to be cashed. That has some people saying the province's cheque in the mail approach is outdated.